Thursday, October 10, 2013

Ply Gem Holdings (NYSE: PGEM) :Could Rocket 50% From Current Levels

By many measures, 2013 is shaping up to be the best year for initial public offerings (IPOs) since 2007. The volume of new offerings has surged, and hot new issues such as FireEye (NASDAQ: FEYE), Rally Software Development (NYSE: RALY) and Epizyme (NASDAQ: EPZM) have already bagged triple-digit gains. A hotly anticipated IPO from Twitter is merely icing on the cake.
Yet amid the good news, some IPOs have been duds. Companies with short track records or an open-ended path to operating losses have been tossed in the IPO dust bin. But in the rubble, you will find some deep value plays. And building products firm Ply Gem Holdings (NYSE: PGEM) is one of them.
The recent IPO has traded down, but now appears to hold considerable upside.
PGEM Chart
When it comes to recent IPOs, it's often wise to steer clear until 180 days have passed. That's when insiders are free to sell shares as the "lock-up expiration" periods ends. Yet, in the case of PGEM, insiders are unlikely to head for the exits. (more)

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